Pay reduction?

Question

I got a letter today from my corp. office telling us all that because business is slow they are freezing their part of the 401k and we are all getting a 5% pay reduction untill the end of the year. I have been with this company who claimes to be a family comp. for 1 1/2 years now with no raise. I like my job but as everything is going up I feel this is unfair and that I work my but off for this. 1st time this has happend to me to loose $, and I guess I am not taking this well.
Everything goes up but our pay and now that is even going down.
What would you all do???

I make good $ and that is going to hurt more the more you make, and harder now a days to find anything that pays good anymore or that is not from a temp service.

Answer 1

We had that happen twice since I have been on my job, but when work picked up they paid back the shortages. Corp officers were cut 10% and lost some benefit permanently. We only get raises every 3 years or so but my last one was 15% and I got bonus and profit sharing after the work picked up.
Companies do what they can, you can leave or wait but you can't get them to pay more than they can afford.

Answer 2

It's hard to take a pay cut. But lets take as step back for one second.

First, you seriously need to consider that the business is having trouble. Forget about 5%, how about losing 95% of your income.

Show you are interested in the business and it's viability. Because you should be. You may need to jump ship in 5 years. Most companies are doing very well the past 3 years. If yours is struggling in good economic times (Markets up, inflation is fine, and unemployment is very low) you should be seriously concerned.

Once you have done your homework on what problems the business faces, you are then in a position to help that company. Show them you do add value and you are worth what you were being paid.

They may cut your pay 5% and your 401K contribution. But maybe they can make contributions in another way. There are often other benefits that they can give you that will reduce their tax bill.

Ask if you can come in a reduced number of hours. Ask for increased vacation time or more non paid vacation days.

You bring your own tools to work? They sell products you can purchase for an increased discount? Ask for them to form a committee to reduce costs.

If you can make people recycle paper, spend less on corporate gas, do less photocopying, spend less on mobile, etc., that's more money to put in your pocket.

Bottom line. If you can prove you are worth the money, or your ideas can save them the money, it's pretty easy to get that money back.

Answer 3

depends on how much you make if its not worth it don't stay